Gold: Close below $1,920 would look to be a warning of a deeper correction – CitiBank

Matías Salord FXStreet

Analysts at Citibank continue to be bullish over the medium and long term in gold. From a technical perspective, they warn that XAU/USD could correct lower with a close below the 55-day moving average.

Key Quotes:

“We are bullish gold tactically in the short-term and structurally over the medium-term. We maintain our 0-3m point-price target at $2,200/oz and a 6-12m target at $2,400/oz. We lift the 2021E base case gold price forecast by ~$300/oz, versus our early July update, to a record $2,275/oz.”

“A close below the 55-day MA at $1,920 would look to be a warning of a deeper correction. However, given what happened in June and give the very strong support at $1,902-$1,903.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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